Market Update

Q2 2018 CMO – Transaction Comps

CMO Transaction Comps USD in millions, except for per-share amounts

Geographic Enterprise EV / LTM EV / LTM Announced Date Target Target Description Buyer Location Value LTM Revenue LTM EBITDA Revenue EBITDA Diversified healthcare company that focuses on developing Catalent Pharma Jul-18 Juniper Pharmaceuticals novel intra-vaginal therapeutics that address unmet medical USA $121.9 $54.3 $1.7 2.2x NM Solutions, Inc. needs in women’s health

Provides contract development and manufacturing services to Catalent Pharma Sep-17 Cook Pharmica LLC USA 950.0 177.8 NA 5.3x NA pharmaceutical and biopharmaceutical companies Solutions, Inc.

Contract research and manufacturing company that provides Jun-17 Albany Molecular Research, Inc. The Carlyle Group L.P. USA 1,593.5 628.7 71.8 2.5x 22.2x integrated drug discovery, development, and manufacturing

Provides outsourced pharmaceutical development and May-17 Patheon N.V. Thermo Fisher USA 7,205.3 1,933.0 351.2 3.7x 20.5x manufacturing services

Provides contract process development and biopharmaceuticals Dec-16 CMC Biologics Asahi Glass Co., Ltd. Denmark 514.3 NA NA NA NA manufacturing services

Develops dosage forms and solutions for the healthcare Dec-16 Capsugel, Inc. Lonza Group Ltd. USA 5,500.0 1,000.0 344.0 5.5x 16.0x industry around the world

Specializes in developing, manufacturing, and scaling up APIs Sep-16 PharmaCore, Inc. Cambrex Corporation USA 25.0 17.0 2.0 1.5x 12.5x for clinical phase projects

Piramal Pharma Solutions Aug-16 Ash Stevens, Inc. Develops and manufactures drug substances and APIs USA 53.0 18.3 NA 2.9x NA Inc.

Manufactures small volume parenterals including vials, Fosun Pharma Industrial Jul-16 Gland Pharma Limited India 1,588.6 188.2 NA 8.4x NA ampoules, pre-filled syringes, and lyophilized vials Pte. Ltd.

Manufactures and sells APIs, customs synthesis, and fine Albany Molecular May-16 Euticals S.p.a. Italy 353.1 243.1 26.8 1.5x 13.2x chemical products Research, Inc.

Notes: Median $433.7 $188.2 $26.8 3.2x 16.0x

NA - Not Available Mean 1,519.0 406.1 118.3 3.6x 16.6x

NM - Not Meaningful High 7,205.3 1,933.0 351.2 8.4x 22.2x

Low 25.0 13.1 2.0 1.4x 11.2x

Source: S&P Capital IQ, July 3, 2018 CRO – Transaction Comps

CRO Transaction Comps USD in millions, except for per share amounts

Geographic Enterprise EV / LTM EV / LTM Announced Date Target Target Description Buyer Location Value LTM Revenue LTM EBITDA Revenue EBITDA

Full-service, clinical CRO that focuses on oncology, vaccines, Mar-18 Accelovance, Inc. Linical USA, Inc. USA $32.9 $26.8 NA 1.2x NA and general medicine

Charles River Laboratories Feb-18 MPI Research Inc. Provides preclinical and early clinical contract research services USA 800.0 240.0 $68.4 3.3x 11.7x International, Inc.

SMO providing solutions to CROs, pharmaceutical, Sep-17 Optimal Research Synexus Limited USA NA NA NA NA NA biotechnology, and medical device companies

Non-clinical contract research organization that provides ICON Public Limited Jul-17 MAPI Development SAS France 139.5 NA NA NA NA mission-critical research services and products Company

Contract research organization that provides clinical Jul-17 Chiltern International Limited Covance Inc. UK 1,200.0 NA NA NA NA development, scientific services, and collaborative technologies

PAREXEL International Outsourcing services company that provides clinical research , Pamplona Capital Jun-17 USA 5,007.4 2,097.0 342.8 2.4x 14.6x Corporation consulting, and commercialization Management LLP

INC Research Holdings, May-17 inVentiv Health Custom synthesis/contract research organiztion USA 4,513.7 2,177.4 292.7 2.1x 15.4x Inc.

Offers CRO support services including clinical trial PAREXEL International Sep-16 ExecuPharm Inc. USA 155.0 NA NA NA NA management, monitoring, and site management Corporation

Provides information and technology services to healthcare Quintiles Transnational May-16 IMS Health Holdings, Inc. USA 13,266.8 3,063.0 743.0 4.3x 17.9x industry worldwide Holdings Inc.

Engages in the identification, recruitment, and retention of Pharmaceutical Product May-16 Synexus Limited UK 257.8 68.8 15.9 3.7x 16.2x patients for clinical trials on behalf of sponsors Development, LLC

Notes: Median $800.0 $1,168.5 $292.7 2.9x 15.4x

NA - Not Available Mean 2,819.2 1,278.8 292.6 2.9x 15.2x

NM - Not Meaningful High 13,266.8 3,063.0 743.0 4.3x 17.9x Low 32.9 26.8 15.9 1.2x 11.7x

Source: S&P Capital IQ, July 3, 2018 Distribution – Transaction Comps

Pharma Distribution Transaction Comps USD in millions, except for per-share amounts

Geographic Enterprise EV / LTM EV / LTM Announced Date Target Target Description Buyer Location Value LTM Revenue LTM EBITDA Revenue EBITDA

Distributes and supplies healthcare products and business AmerisourceBergen Nov-17 H. D. Smith, LLC USA $815.0 NA NA NA NA solutions to manufacturers and healthcare providers Corporation

Distributes pharmaceutical products, medical devices, and Shanghai Pharma Century Nov-17 Cardinal Health (L) Co., Ltd. Malaysia 557.0 $3,845.7 $83.3 0.1x 6.7x specialty pharmaceuticals to pharmacies and hospitals Global Limited

Engages in the trade of pharmaceuticals, cosmetics, and Korporacja Inwestycyjna Mar-17 Pelion S.A. parapharmaceuticals operating through wholesale, retail, Poland 323.4 2,399.5 31.5 0.1x 10.3x Polskiej Farmacji Sp. z o.o. services, and other segments

Distributes generic, branded, specialty, and over-the-counter Teva Pharmaceutical Aug-16 Anda, Inc. USA 500.0 NA NA NA NA pharmaceutical products Industries Limited

Distributes generics drugs for privately insured individuals AlliancePharma Inc. Jul-16 Pharmapar Inc. Canada 11.1 17.3 NA 0.6x NA offering a range of medication types (nka:KDA Group Inc.)

RoundTable Healthcare May-16 Symmetry Surgical, Inc. Manufactures and distributes medical devices worldwide USA 129.5 84.1 9.1 1.5x 14.2x Partners IV, L.P

Operates a network of retail pharmacy stores in Canada McKesson Canada Mar-16 Rexall Pharma Plus Ltd. offering prescription centers that focus primarily on prescription Canada 2,154.3 2,000.0 200.0 1.1x 11.1x Corporation and over-the-counter products

Provides access to unlicensed pharmaceutical products Apr-15 Idis Group Holdings Ltd. Clinigen Group Plc UK 341.4 274.5 19.0 1.2x 18.0x internationally

Distributes specialty pharmaceuticals and medical supplies, Feb-15 BioRx, LLC Diplomat Pharmacy, Inc. USA 347.8 227.0 23.0 1.5x 15.1x and provides infusion services in the United States

Jan-15 Norchem Ltd. Distributes and markets pharmaceuticals Lexon (UK) Limited UK 34.9 37.9 NA 0.9x NA

Notes: Median $344.6 $250.7 $27.2 1.0x 12.7x

NA - Not Available Mean 521.4 1,110.8 61.0 0.9x 12.6x

NM - Not Meaningful High 2,154.3 3,845.7 200.0 1.5x 18.0x

Low 11.1 17.3 9.1 0.1x 6.7x

Source: S&P Capital IQ, July 3, 2018 CMO – Trading Comps

CMO - Trading Comps

USD in millions, except for per-share amounts 6/30/2018 LTM NTM Forecast NTM YoY Growth Share Shares Equity Net Debt Total Enterprise Interest Book Dividend Company Ticker Price Out Value (Cash) Debt Value Sales EBITDA EBIT EPS Expense Sales EBITDA EPS Sales EBITDA Value /share

Bachem Holding AG SWX:BANB $131.7 13.6 $1,787.7 $79.7 $97.4 $1,867.3 $268.4 $72.9 $51.5 $2.3 $0.3 $296.6 $82.2 $3.6 10.5% 12.8% $28.3 $2.8 Balchem Corporation NasdaqGS:BCPC 98.1 32.1 3,151.1 167.6 210.3 3,318.7 618.5 148.5 104.8 1.78 7.6 661.1 162.3 3.0 6.9% 9.3% 19.9 0.4

Cambrex Corporation NYSE:CBM 52.3 33.0 1,723.8 (187.6) 0.0 1,536.2 570.7 177.9 145.7 2.71 1.1 556.1 153.1 3.1 (2.6%) (13.9%) 18.0 NA

Catalent, Inc. NYSE:CTLT 41.9 133.4 5,586.8 2,374.9 2,777.1 7,961.7 2,395.0 484.6 308.4 0.83 104.0 2,581.2 589.0 1.8 7.8% 21.5% 8.0 NA

Consort Medical plc LSE:CSRT 15.7 49.0 770.5 131.4 160.9 901.9 428.1 92.8 57.5 0.67 4.4 426.8 78.5 0.9 (0.3%) (15.4%) 6.9 0.3

Jubilant Life Sciences Limited BSE:530019 10.2 159.3 1,623.9 454.2 506.0 2,078.0 1,155.3 218.5 183.5 0.59 43.7 1,297.6 268.7 0.9 12.3% 22.9% 4.0 0.0

Koninklijke DSM N.V. ENXTAM:DSM 100.5 173.0 17,387.1 736.7 3,250.0 18,123.9 10,974.5 1,781.4 1,228.3 2.54 131.8 10,808.1 2,081.4 5.9 (1.5%) 16.8% 50.9 2.3 Lonza Group Ltd SWX:LONN 265.2 74.2 19,690.4 3,939.2 4,438.9 23,629.6 5,238.3 1,289.8 893.7 6.72 77.0 6,045.1 1,558.1 11.9 15.4% 20.8% 85.8 2.8

Recipharm AB (publ) OM:RECI B 15.0 67.3 1,007.7 464.0 520.4 1,471.7 665.2 96.3 37.3 0.11 15.1 693.6 109.9 0.4 4.3% 14.0% 8.9 NA

Siegfried Holding AG SWX:SFZN 399.1 4.2 1,671.4 67.7 102.7 1,739.1 770.1 112.0 61.9 9.08 3.8 810.8 136.7 16.1 5.3% 22.0% 166.8 2.5

Teligent, Inc. NasdaqGS:TLGT 3.5 53.5 185.2 110.8 123.6 296.0 61.9 (13.1) (18.0) (0.18) 11.5 81.6 6.8 (0.0) 31.7% (152.4%) 0.8 NA

West Pharmaceutical Services, Inc. NYSE:WST 99.3 73.6 7,305.5 (1.8) 198.0 7,303.7 1,627.1 335.2 235.4 2.05 7.6 1,765.8 387.7 2.9 8.5% 15.7% 17.7 0.5

Margin Analysis Enterprise Value/ P/E Debt/ Data Gross NTM NTM NTM Enterprise Equity Interest Price to Dividend Company Ticker FYE as of Profit EBITDA EBIT Sales EBITDA EBIT Sales EBITDA LTM Forecast Value Value EBITDA Coverage Book %

Bachem Holding AG SWX:BANB 31-Dec 30-Jun-18 31.6% 27.1% 19.2% 7.0 x 25.6 x 36.3 x 6.3 x 22.7 x 58.1 x 36.4 x 5.2% 5.4% 1.3 x NM 4.7 x 2.1%

Balchem Corporation NasdaqGS:BCPC 31-Dec 30-Jun-18 31.7% 24.0% 16.9% 5.4 x 22.4 x 31.7 x 5.0 x 20.4 x 55.1 x 32.9 x 6.3% 6.7% 1.4 x 13.7 x 4.9 x 0.4%

Cambrex Corporation NYSE:CBM 31-Dec 30-Jun-18 41.0% 31.2% 25.5% 2.7 x 8.6 x 10.5 x 2.8 x 10.0 x 19.3 x 17.1 x 0.0% 0.0% 0.0 x 136.3 x 2.9 x NA

Catalent, Inc. NYSE:CTLT 30-Jun 30-Jun-18 30.7% 20.2% 12.9% 3.3 x 16.4 x 25.8 x 3.1 x 13.5 x 50.2 x 23.6 x 34.9% 49.7% 5.7 x 3.0 x 5.2 x NA Consort Medical plc LSE:CSRT 30-Apr 30-Jun-18 22.0% 21.7% 13.4% 2.1 x 9.7 x 15.7 x 2.1 x 11.5 x 23.3 x 17.4 x 17.8% 20.9% 1.7 x 13.1 x 2.3 x 1.8%

Jubilant Life Sciences Limited BSE:530019 31-Mar 30-Jun-18 56.2% 18.9% 15.9% 1.8 x 9.5 x 11.3 x 1.6 x 7.7 x 17.2 x 11.5 x 24.3% 31.2% 2.3 x 4.2 x 2.5 x 0.5%

Koninklijke DSM N.V. ENXTAM:DSM 31-Dec 30-Jun-18 36.0% 16.2% 11.2% 1.7 x 10.2 x 14.8 x 1.7 x 8.7 x 39.6 x 17.0 x 17.9% 18.7% 1.8 x 9.3 x 2.0 x 2.3%

Lonza Group Ltd SWX:LONN 31-Dec 30-Jun-18 38.2% 24.6% 17.1% 4.5 x 18.3 x 26.4 x 3.9 x 15.2 x 39.5 x 22.2 x 18.8% 22.5% 3.4 x 11.6 x 3.1 x 1.1%

Recipharm AB (publ) OM:RECI B 31-Dec 30-Jun-18 68.3% 14.5% 5.6% 2.2 x 15.3 x 39.4 x 2.1 x 13.4 x NM 35.9 x 35.4% 51.6% 5.4 x 2.5 x 1.7 x NA Siegfried Holding AG SWX:SFZN 31-Dec 30-Jun-18 18.5% 14.5% 8.0% 2.3 x 15.5 x 28.1 x 2.1 x 12.7 x 43.9 x 24.8 x 5.9% 6.1% 0.9 x 16.3 x 2.4 x 0.6%

Teligent, Inc. NasdaqGS:TLGT 31-Dec 30-Jun-18 4.5% NM NM 4.8 x NM NM 3.6 x 43.2 x NM NM 41.8% 66.7% -9.5 x NM 4.6 x NA

West Pharmaceutical Services, Inc. NYSE:WST 31-Dec 30-Jun-18 31.5% 20.6% 14.5% 4.5 x 21.8 x 31.0 x 4.1 x 18.8 x 48.5 x 33.8 x 2.7% 2.7% 0.6 x 31.0 x 5.6 x 0.5%

* All estimates from Capital IQ Median 31.7% 20.6% 14.5% 3.0 x 15.5 x 26.4 x 2.9 x 13.5 x 41.8 x 23.6 x 17.9% 19.8% 1.6 x 12.3 x 3.0 x 0.8% Debt calculations only included for entities with debt Mean 34.2% 21.2% 14.6% 3.5 x 15.8 x 24.6 x 3.2 x 16.5 x 39.5 x 24.8 x 17.6% 23.5% 1.3 x 24.1 x 3.5 x 1.2% NA - Not Available Min 4.5% 14.5% 5.6% 1.7 x 8.6 x 10.5 x 1.6 x 7.7 x 17.2 x 11.5 x 0.0% 0.0% -9.5 x 2.5 x 1.7 x 0.4% NM - not meaningful Max 68.3% 31.2% 25.5% 7.0 x 25.6 x 39.4 x 6.3 x 43.2 x 58.1 x 36.4 x 41.8% 66.7% 5.7 x 136.3 x 5.6 x 2.3%

▪ Demand for capacity and the need to differentiate their offerings continues to be a main driver for M&A activity by larger CMOs ▪ The median EV multiples for CMOs were 3.0x and 15.5x for Sales and EBITDA, respectively

Source: S&P Capital IQ, June 30, 2018 CRO – Trading Comps

CRO - Trading Comps

USD in millions, except for per-share amounts 6/30/2018 LTM NTM Forecast NTM YoY Growth Share Shares Equity Net Debt Total Enterprise Interest Book Dividend Company Ticker Price Out Value (Cash) Debt Value Revenue EBITDA EBIT EPS Expense Revenue EBITDA EPS Revenue EBITDA Value /share

Charles River Laboratories International, Inc. NYSE:CRL $112.3 47.9 $5,378.6 $942.4 $1,132.7 $6,321.0 $1,905.8 $449.4 $317.4 $4.09 $34.0 $2,307.0 $559.0 $5.9 21.1% 24.4% $23.8 NA

ICON Public Limited Company NasdaqGS:ICLR 132.5 53.8 7,129.3 (4.6) 349.0 7,124.7 1,946.6 413.4 349.7 3.85 13.2 2,619.6 462.6 6.2 34.6% 11.9% 22.4 NA IQVIA Holdings Inc. NYSE:IQV 99.8 202.3 20,195.0 9,446.0 10,453.0 29,641.0 8,263.0 1,737.0 810.0 1.21 367.0 10,344.1 2,213.7 5.5 25.2% 27.4% 39.5 NA Linical Co., Ltd. TSE:2183 22.4 22.7 509.6 (39.9) 8.8 469.6 85.8 19.4 17.4 0.48 0.0 120.0 25.2 0.6 39.8% 30.0% 2.2 0.10 Medpace Holdings, Inc. NasdaqGS:MEDP 43.0 35.5 1,527.6 201.4 223.7 1,729.0 455.8 113.6 69.0 0.91 8.1 434.2 106.5 1.9 (4.7%) (6.3%) 14.5 NA PRA Health Sciences, Inc. NasdaqGS:PRAH 93.4 64.1 5,982.2 1,208.2 1,338.9 7,190.4 2,162.5 361.5 271.1 1.73 52.0 2,987.7 462.7 4.3 38.2% 28.0% 14.7 NA Syneos Health, Inc. Nasdaq:SYNH 46.9 102.8 4,820.4 2,784.4 2,971.1 7,604.8 2,658.0 370.0 137.7 (0.18) 92.4 4,530.5 603.7 2.8 70.5% 63.2% 28.0 NA

Margin Analysis Enterprise Value/ P/E Debt/ Data Gross NTM NTM NTM Enterprise Equity Interest Price to Dividend Company Ticker FYE as of Profit EBITDA EBIT Revenue EBITDA EBIT Revenue EBITDA LTM Forecast Value Value EBITDA Coverage Book %

Charles River Laboratories International, Inc. NYSE:CRL 30-Dec 30-Jun-18 38.5% 23.6% 16.7% 3.3 x 14.1 x 19.9 x 2.7 x 11.3 x 27.4 x 18.9 x 17.9% 21.1% 2.5 x 9.3 x 4.7 x NA ICON Public Limited Company NasdaqGS:ICLR 31-Dec 30-Jun-18 46.1% 21.2% 18.0% 3.7 x 17.2 x 20.4 x 2.7 x 15.4 x 34.4 x 21.3 x 4.9% 4.9% 0.8 x 26.4 x 5.9 x NA IQVIA Holdings Inc. NYSE:IQV 31-Dec 30-Jun-18 42.5% 21.0% 9.8% 3.6 x 17.1 x 36.6 x 2.9 x 13.4 x 82.3 x 18.1 x 35.3% 51.8% 6.0 x 2.2 x 2.5 x NA Linical Co., Ltd. TSE:2183 31-Mar 30-Jun-18 38.8% 22.6% 20.3% 5.5 x 24.3 x 27.0 x 3.9 x 18.7 x 47.2 x 35.3 x 1.9% 1.7% 0.5 x NM 10.4 x 0.5% Medpace Holdings, Inc. NasdaqGS:MEDP 31-Dec 30-Jun-18 51.5% 24.9% 15.1% 3.8 x 15.2 x 25.0 x 4.0 x 16.2 x 47.2 x 23.1 x 12.9% 14.6% 2.0 x 8.6 x 3.0 x NA PRA Health Sciences, Inc. NasdaqGS:PRAH 31-Dec 30-Jun-18 36.3% 16.7% 12.5% 3.3 x 19.9 x 26.5 x 2.4 x 15.5 x 54.0 x 21.8 x 18.6% 22.4% 3.7 x 5.2 x 6.4 x NA

Syneos Health, Inc. Nasdaq:SYNH 31-Dec 30-Jun-18 39.5% 13.9% 5.2% 2.9 x 20.6 x 55.2 x 1.7 x 12.6 x NM 16.9 x 39.1% 61.6% 8.0 x 1.5 x 1.7 x NA

* All estimates from Capital IQ Median 39.5% 21.2% 15.1% 3.6 x 17.2 x 26.5 x 2.7 x 15.4 x 47.2 x 21.3 x 17.9% 21.1% 2.5 x 6.9 x 4.7 x 0.5% Debt calculations only included for entities with debt Mean 41.9% 20.6% 13.9% 3.7 x 18.3 x 30.1 x 2.9 x 14.7 x 48.8 x 22.2 x 18.7% 25.4% 3.4 x 8.9 x 4.9 x 0.5% NA - Not Available Min 36.3% 13.9% 5.2% 2.9 x 14.1 x 19.9 x 1.7 x 11.3 x 27.4 x 16.9 x 1.9% 1.7% 0.5 x 1.5 x 1.7 x 0.5% NM - not meaningful Max 51.5% 24.9% 20.3% 5.5 x 24.3 x 55.2 x 4.0 x 18.7 x 82.3 x 35.3 x 39.1% 61.6% 8.0 x 26.4 x 10.4 x 0.5%

▪ CROs seek to provide innovative and efficient solutions with technology playing an important role in efforts to streamline clinical operations1 ▪ Subsector of the industry trading at historical highs as illustrated by heightened EV multiples ▪ The median EV multiples for CROs were 3.6x and 17.2x for Sales and EBITDA, respectively

Source: S&P Capital IQ, June 30, 2018 1) Contract Pharma CRO Industry Update: Big Data Drives Drug Development Efforts Distribution – Trading Comps

Distribution - Trading Comps USD in millions, except for per-share amounts 6/30/2018 LTM NTM Forecast NTM YoY Growth Share Shares Equity Net Debt Total Enterprise Interest Book Dividend Company Ticker Price Out Value (Cash) Debt Value Sales EBITDA EBIT EPS Expense Sales EBITDA EPS Sales EBITDA Value /share

AmerisourceBergen Corporation NYSE:ABC $85.3 219.8 $18,742.7 $2,801.6 $4,892.9 $21,544.2 $159,327.3 $2,375.8 $1,928.2 $5.37 $160.5 $175,148.6 $2,411.9 $6.8 9.9% 1.5% $14.5 $1.5

Cardinal Health, Inc. NYSE:CAH $48.8 310.7 15,170.8 7,403.0 9,578.0 22,573.8 134,426.0 3,222.0 2,251.0 4.24 318.0 139,803.7 2,746.0 $4.9 4.0% (14.8%) 24.2 $1.8

Henry Schein, Inc. NasdaqGS:HSIC $72.6 154.0 11,188.4 1,869.6 1,968.8 13,058.0 12,759.0 1,081.0 880.6 3.03 59.8 13,549.1 1,135.0 $4.2 6.2% 5.0% 18.8 NA

McKesson Europe AG HMSE:CLS1 $30.8 203.2 6,259.5 702.0 1,683.1 6,961.5 25,982.5 185.4 65.0 0.10 64.1 NA NA NA NA NA 11.5 $0.9

McKesson Corporation NYSE:MCK $133.4 201.8 26,916.9 5,437.0 8,109.0 32,353.9 208,357.0 3,872.0 2,921.0 6.64 283.0 216,165.6 4,127.0 $13.4 3.7% 6.6% 48.5 $1.3

Owens & Minor, Inc. NYSE:OMI $16.7 61.8 1,032.5 809.4 897.1 1,842.0 9,362.3 198.6 144.5 1.23 35.3 10,187.8 312.3 $2.1 8.8% 57.3% 16.5 $1.0

Patterson Companies, Inc. NasdaqGS:PDCO $22.7 92.4 2,095.6 953.3 1,016.2 3,048.9 5,465.7 303.7 219.9 1.21 46.7 5,558.7 306.8 $1.7 1.7% 1.0% 15.9 $1.0

UDG Healthcare plc LSE:UDG $10.9 248.7 2,710.2 46.6 257.5 2,756.8 1,316.2 160.9 110.6 0.24 9.5 1,406.4 179.4 $0.5 6.9% 11.5% 3.5 $0.1

AmerisourceBergen Corporation NYSE:ABC 30-Sep 30-Jun-18 2.9% 1.5% 1.2% 0.1 x 9.1 x 11.2 x 0.1 x 8.9 x 15.9 x 12.6 x 22.7% 26.1% 2.1 x 12.0 x 5.9 x 1.7%

Cardinal Health, Inc. NYSE:CAH 30-Jun 30-Jun-18 5.3% 2.4% 1.7% 0.2 x 7.0 x 10.0 x 0.2 x 8.2 x 11.5 x 10.0 x 42.4% 63.1% 3.0 x 7.1 x 2.0 x 3.8%

Henry Schein, Inc. NasdaqGS:HSIC 30-Dec 30-Jun-18 27.2% 8.5% 6.9% 1.0 x 12.1 x 14.8 x 1.0 x 11.5 x 24.0 x 17.4 x 15.1% 17.6% 1.8 x 14.7 x 3.9 x NA

McKesson Europe AG HMSE:CLS1 31-Mar 30-Jun-18 10.1% NM 0.3% 0.3 x 37.5 x NM NA NA NM NA 24.2% 26.9% 9.1 x 1.0 x 2.7 x 2.9%

McKesson Corporation NYSE:MCK 31-Mar 30-Jun-18 5.4% 1.9% 1.4% 0.2 x 8.4 x 11.1 x 0.1 x 7.8 x 20.1 x 10.0 x 25.1% 30.1% 2.1 x 10.3 x 2.7 x 1.0%

Owens & Minor, Inc. NYSE:OMI 31-Dec 30-Jun-18 13.0% 2.1% 1.5% 0.2 x 9.3 x 12.7 x 0.2 x 5.9 x 13.6 x 7.9 x 48.7% 86.9% 4.5 x 4.1 x 1.0 x 6.2%

Patterson Companies, Inc. NasdaqGS:PDCO 28-Apr 30-Jun-18 21.9% 5.6% 4.0% 0.6 x 10.0 x 13.9 x 0.5 x 9.9 x 18.7 x 13.2 x 33.3% 48.5% 3.3 x 4.7 x 1.4 x 4.6%

UDG Healthcare plc LSE:UDG 30-Sep 30-Jun-18 28.3% 12.2% 8.4% 2.1 x 17.1 x 24.9 x 2.0 x 15.4 x 44.6 x 23.0 x 9.3% 9.5% 1.6 x 11.6 x 3.1 x 1.3%

* All estimates from Capital IQ Median 11.5% 2.4% 1.6% 0.2 x 9.7 x 12.7 x 0.2 x 8.9 x 18.7 x 12.6 x 24.6% 28.5% 2.5 x 8.7 x 2.7 x 2.9% Debt calculations only included for entities with debt Mean 14.3% 4.9% 3.2% 0.6 x 13.8 x 14.1 x 0.6 x 9.7 x 21.2 x 13.4 x 27.6% 38.6% 3.4 x 8.2 x 2.8 x 3.1% NA - Not Available Min 2.9% 1.5% 0.3% 0.1 x 7.0 x 10.0 x 0.1 x 5.9 x 11.5 x 7.9 x 9.3% 9.5% 1.6 x 1.0 x 1.0 x 1.0% NM - not meaningful Max 28.3% 12.2% 8.4% 2.1 x 37.5 x 24.9 x 2.0 x 15.4 x 44.6 x 23.0 x 48.7% 86.9% 9.1 x 14.7 x 5.9 x 6.2%

▪ Trading at lower sales multiples relative to other Pharma Services segments in general due to lower earnings margins from pricing pressure for branded and generic drugs ▪ The two outliers, UDG and Henry Schein, have superior margins and YoY growth relative to most competitors ▪ The median EV multiples for Distribution were 0.3x and 9.7x for Sales and EBITDA, respectively

Source: S&P Capital IQ, June 30, 2018 Clinical Laboratories – Trading Comps

Clinical Laboratories - Trading Comps

Laboratory Corporation of America Holdings NYSE:LH $179.5 102.3 $18,365.9 $6,415.2 $6,777.0 $24,781.1 $10,640.5 $2,042.3 $1,580.0 $7.92 $246.2 $11,585.0 $2,182.2 $11.7 8.9% 6.8% $68.4 NA

Quest Diagnostics Incorporated NYSE:DGX 109.9 135.8 14,931.7 3,849.0 3,973.0 18,780.7 7,776.0 1,573.0 1,291.0 5.01 162.0 7,784.1 1,604.8 $6.7 0.1% 2.0% 37.0 1.85

Laboratory Corporation of America Holdings NYSE:LH 31-Dec 30-Jun-18 33.4% 19.2% 14.8% 2.3 x 12.1 x 15.7 x 2.1 x 11.4 x 22.7 x 15.4 x 27.3% 36.9% 3.3 x 6.4 x 2.6 x NA

Quest Diagnostics Incorporated NYSE:DGX 31-Dec 30-Jun-18 39.2% 20.2% 16.6% 2.4 x 11.9 x 14.5 x 2.4 x 11.7 x 21.9 x 16.4 x 21.2% 26.6% 2.5 x 8.0 x 3.0 x 1.7%

* All estimates from Capital IQ Median 36.3% 19.7% 15.7% 2.4 x 12.0 x 15.1 x 2.3 x 11.5 x 22.3 x 15.9 x 24.3% 31.8% 2.9 x 7.2 x 2.8 x 1.7% Debt calculations only included for entities with debt Mean 36.3% 19.7% 15.7% 2.4 x 12.0 x 15.1 x 2.3 x 11.5 x 22.3 x 15.9 x 24.3% 31.8% 2.9 x 7.2 x 2.8 x 1.7% NA - Not Available Min 33.4% 19.2% 14.8% 2.3 x 11.9 x 14.5 x 2.1 x 11.4 x 21.9 x 15.4 x 21.2% 26.6% 2.5 x 6.4 x 2.6 x 1.7% NM - not meaningful Max 39.2% 20.2% 16.6% 2.4 x 12.1 x 15.7 x 2.4 x 11.7 x 22.7 x 16.4 x 27.3% 36.9% 3.3 x 8.0 x 3.0 x 1.7%

▪ Small sample size due to limited amount of public players within the space ▪ The median EV multiples for Clinical Laboratories were 2.4x and 12.0x for Sales and EBITDA, respectively

Source: S&P Capital IQ, June 30, 2018 Valuation Trends – Last 3 Years

Historical Total Enterprise Value / EBITDA Multiples

20.0x 19.0x 18.0x 17.0x 17.0x 16.0x 15.0x 14.0x 14.7x 13.0x 12.6x

TEV/EBITDA 12.0x 11.9x 11.0x 10.0x 9.0x 9.8x 8.0x 7.0x

Date

Contract Manufacturing Contract Research Distribution Clinical Laboratories S&P 500 ▪ The pharma services subsectors, except Distribution, have positive trends over the past few years and are trading at historical highs ▪ The CRO segment has held steady the past year while CMO is recovering after a significant dip

CMO basket consists of the following: Bachem (SWX:BANB), Balchem (NasdaqGS:BCPC), Cambrex (NYSE:CBM), Catalent (NYSE:CTLT), Jubilant (BSE:530019), DSM (ENXTAM:DSM), Lonza (SWX:LONN), Recipharm AB (OM:RECI B), Siegfried (SWX:SFZN), Teligent (NasdaqGS:TLGT), and West Pharmaceuticals (NYSE:WST) CRO basket consists of the following: Charles River (NYSE:CRL), ICON (NasdaqGS:ICLR), IQVIA (NYSE:IQV), Medpace (NasdaqGS:MEDP), PRA Health Sciences (NasdaqGS:PRAH), Syneos Health, Inc. (NasdawGS:SYNH) Distribution basket consists of: AmerisourceBergen (NYSE:ABC), Cardinal Health (NYSE:CAH), Henry Schlein (NasdaqGS:HSIC), McKesson Europe (HMSE:CLS1), McKesson (NYSE:MCK), Owens & Minor (NYSE:OMI), Patterson Companies (NasdaqGS:PDCO), and UDG Healthcare (LSE:UDG) Clinical Laboratories basket consists of: Lab Corp (NYSE:LH) and Quest Diagnostics (NYSE:DGX)

Source: S&P Capital IQ, July 3, 2018 Valuation Trends (Current, 3 Year, & LTM Comparisons)

▪ Below are the current TEV / EBITDA multiples for each sector: ▪ CMO: 14.7x (16.7% above current S&P multiples) ▪ CRO: 17.0x (34.9% above current S&P multiples) ▪ Distribution: 9.8x (22.2% below current S&P multiples) ▪ Clinical Laboratories: 11.9x (5.6% below current S&P multiples) ▪ S&P 500: 12.6x

▪ Below are the average TEV / EBITDA multiples for each sector over the last 3 years: ▪ CMO: 13.4x (15.4% above average S&P multiples) ▪ CRO: 15.9x (37.0% above average S&P multiples) ▪ Distribution: 10.7x (8.1% below average S&P multiples) ▪ Clinical Laboratories: 10.9x (6.0% below average S&P multiples) ▪ S&P 500: 11.6x

▪ Below are the % change in TEV / EBITDA multiples for each sector over the last 3 years (and LTM): ▪ CMO: +11.2% (down 6.7% in the last 12 months) ▪ CRO: +16.6% (down 3.1% in the last 12 months) ▪ Distribution: -28.7% (down 7.4% in the last 12 months) ▪ Clinical Laboratories: +0.9% (up 4.4% in the last 12 months) ▪ S&P 500: 20.3% (up 4.6% in the last 12 months)

Source: S&P Capital IQ, July 3, 2018 Valuation Trends – Last 5 Years

Historical Total Enterprise Value / EBITDA Multiples

20.0x 19.0x 18.0x 17.0x 17.0x 16.0x 15.0x 14.0x 14.7x 13.0x 12.6x 12.0x

TEV/EBITDA 11.0x 11.9x 10.0x 9.0x 9.8x 8.0x 7.0x 6.0x

Date

Contract Manufacturing Contract Research Distribution Clinical Laboratories S&P 500

▪ 5 year outlook shows heightened values for CMOs, CROs, and Clinical Labs compared to historical trading multiples

Source: S&P Capital IQ, July 3, 2018 Valuation Trends (Current, 5 Year, & LTM Comparisons)

▪ Below are the average TEV / EBITDA multiples for each sector over the last 5 years: ▪ CMO: 12.6x (14.6% above average S&P multiples) ▪ CRO: 14.9x (36.1% above average S&P multiples) ▪ Distribution: 11.5x (5.1% above average S&P multiples) ▪ Clinical Laboratories: 10.3x (5.8% below average S&P multiples) ▪ S&P 500: 11.0x

▪ Below are the % change in TEV / EBITDA multiples for each sector over the last 5 years (and LTM): ▪ CMO: +49.1% (down 6.7% in the last 12 months) ▪ CRO: +27.3% (down 3.1% in the last 12 months) ▪ Distribution: +0.5% (down 7.4% in the last 12 months) ▪ Clinical Laboratories: +40.6% (up 4.4% in the last 12 months) ▪ S&P 500: 40.0% (up 4.6% in the last 12 months)

Source: S&P Capital IQ, July 3, 2018